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Monday, June 19, 2017

Government cancels GST order on 60 food items

GST to cover 60 more food items will further burden and squeeze the rakyat's budget if implemented

PETALING JAYA - The Customs Department has cancelled the order which would have seen over 60 food items, including staples such as noodles, potatoes and spinach, subject to the goods and services tax (GST).

In a statement, the department’s director-general  Subromaniam Tholasy said the decision was made after it had referred the matter to the finance ministry.

Earlier, China Press reported that some 60 food items including seafood, vegetables, fruits, tea, coffee, spices and noodles would be subject to the GST beginning July 1.

Other items that were said would be subject to the 6% GST included bihun, kuey teow, laksa mee, coconut oil, eel and swordfish, as well as imported fruits like avocados, figs, grapes, nectarines, cherries and berries.

Under the category of vegetables, potatoes, long beans, peas, spinach and sweet corn would reportedly be taken off the GST zero-rated list.

The government introduced the GST in April 2015 in the form of a 6% tax on goods and services.

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